Singapore's latest GST Increase

It’s time to recuperate from the Covid-19

Mommy Rhey | Feb. 15, 2022 | 324 reads
Singapore's latest GST Increase
Credit: Rita Ann Deguit / Canva

Singapore is now on a post-pandemic stage, but the effect of Covid19 on the economy is still on the mend. As of January 2022, the GST on all scales of goods and services is 7%, which changed from 5% way back in 2007.

After the cases of the Covid-19 infection surges, the government has to implement safety and health protocols to prevent the number of infections from increasing and protect vulnerable individuals. In effect, regular employers and businesses have to close down their establishments, reduce workers, and shift into work from home. The sales also declined due to insufficient sources of income of the consumers. The most significant two sources of tax revenue in Singapore were the corporates and personal income taxes, which now have a slow rate.

The 9% increase in GST was supposed to happen in 2018, but it was delayed due to the Covid19. Even with the postponements and higher expenditure, the government-supplied healthcare and different needs in times of the pandemic. They must take a few steps forward to refocus on fiscal sustainability and move to the budget increase, including the GST increase.

According to DBS Senior Economist Irvin Seah said on her interview, “The past two years of the pandemic has taken a huge toll on Singapore’s fiscal resources, and there is now an urgent need to refocus on fiscal sustainability,”

Meanwhile, UOB economist Barnabas Gan said, “This suggests that tax receipts including that of personal income, corporate and GST have not been enough to cover the rising expenditure costs,”

The yearly budget starts in April, and the Ministry of Finance, Mr. Lawrence Wong, will deliver the Budget2022 speech on February 18 at 3:30 PM in the Parliament. The speech will be aired on television and radio and published on the Singapore Budget website.

On the other hand, it is not only Singapore that has plans to mull taxes but also other countries such as the United Kingdom and Indonesia.

Find this story interesting, do follow us on Facebook, Twitter, Instagram, YouTube, or Email to get the latest.
Latest
Almost-No-Cost Two-Day Exploration of Singapore
Almost-No-Cost Two-Day Exploration of Singapore
With its dynamic cuisine, beautiful trails, friendly faces and environmentally-friendly infrastructures, 2 days can give you a taste of what …

Singapore Budget 2022
Singapore Budget 2022
Singapore is now rebuilding the economy for the better for all Singaporeans

Zeng, Singaporean, Impresses in a Quiz Show
Zeng, Singaporean, Impresses in a Quiz Show
Human Atlas from Singapore!

Academies and Clubs for Persons With Disabilities to Expand in Singapore
Academies and Clubs for Persons With Disabilities to Expand in Singapore
The expansion will help people with disabilities to join sports, as well as develop their skills.

Queen Elizabeth Positive with Covid19
Queen Elizabeth Positive with Covid19
The Queen is in her 90s, and her immune system is vulnerable. Get well soon Queen Elizabeth.

Chinese New Year celebrated by giving goodies to migrant Workers in Singapore
Chinese New Year celebrated by giving goodies to migrant Workers in Singapore
Celebrating the holiday with family and sharing prosperity. Kong He Fat Choi!


Singapore's latest GST Increase
Singapore's latest GST Increase
It’s time to recuperate from the Covid-19

Singapore Airlines Open for Applicants
Singapore Airlines Open for Applicants
SIA needs a cabin crew!

Tiles Burst in Tampines Home
Tiles Burst in Tampines Home
It’s best if you double-check the house with professional and reliable inspectors.